The day after Silicon Valley Bank went bankrupt, the number of active NFT traders dropped to its lowest level since November 2021.
DappRadar showed that there were only 12,000 active NFT traders last Saturday, which was the day after the Federal Deposit Insurance Corp. took over Silicon Valley Bank. This was the lowest number of active NFT traders since November 2021. On that day, there were 33,112 single NFT trades, which is the lowest number for a single day so far this year.
Success factors for Yuga Labs
As DappRadar says the number of NFT trades has dropped 51% since the beginning of March, while sales have dropped 16%.
But not every set of non-fungible tokens was affected the same way. The floor prices of Yuga Labs’ projects, like Bored Ape Yacht Club and CryptoPunks, went down a little on Saturday, but they quickly went back up. One Twitter user compared CryptoPunks to USDC and said it was more stable than the stablecoin, which stopped being tied to the US dollar after Silicon Valley Bank went bankrupt. The bank had to sell a lot of its assets at a loss because so many people wanted to take money out.
Sara Gherghelas, a research analyst at DappRadar, says that Yuga Labs’ success has been helped by its investment in CryptoPunks and its ability to build a community. Even though the company said it didn’t have much to do with Silicon Valley Bank, token holders didn’t react much to the news.
Gherghelas said, “They have a very clear road map, the team is visible, and they decided to deliver a good project after the Ape ecosystem. They keep building. They are showing that if you’re part of their community, they have so many perks and benefits.”
When Silicon Valley Bank closed, not all of its collections were left in good shape. Proof, the NFT collective behind the popular collection Moonbirds, took to Twitter soon after the news broke on March 10 to say that the company had some money invested in Silicon Valley Bank, which worried holders.
1/5: A statement from the PROOF team regarding SVB:
Many of you have seen the headlines this morning about the Silicon Valley Bank closure. The most important thing to us—in both good times and bad—is to communicate with our community proactively and transparently.
:
— PROOF (
,
) (@proof_xyz) March 10, 2023
Moonbirds tension
DappRadar has said, over the weekend, Moonbirds lost about 18% of its value. On Saturday, a big investor sold 500 Moonbirds at a loss of between 9% and 33%, which added up to over 700 ETH, or about $1.1 million.
Gherghelas stated “ Proof’s ties to Silicon Valley Bank made the project less certain, but that holders had to sell because of the company’s problems in recent months. After the company canceled the Proof of Conference that was supposed to happen in May, people aren’t sure if it can keep its promises.
“People, users and consumers are becoming pickier and they don’t want hype, they want the perks, the benefits and the utility behind that NFT collection,” Gherghelas said.
Content Source: coindesk.com
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